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Which of These Principles of Cash Managements Is Untrue

Question 61

Multiple Choice

Which of these principles of cash managements is untrue?


A) There are disadvantages for a business in holding very low levels of inventory.
B) The longer the operating cycle the longer it takes to pay creditors.
C) It is generally a mistake to delay paying creditors if it means discounts on offer are lost.
D) Generally cash surplus to requirements should be used to acquire necessary non-current assets rather than being kept on fixed deposit.

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